Apple signs fresh agreement with Samsung for supplying iPhone chips: Report

Apple and Samsung have renewed their agreement related to sourcing of mobile processors, if a new report is to be believed.

According to The Korea Economic Daily, Apple has signed a new deal with Samsung under which the latter will supply processors for Apple's iPhone, starting 2015. The report cites industry sources to inform that the agreement was signed on July 14, and that Samsung will produce the new chips deploying the 14 nano FinFET technology for Apple's iPhone 7 which is expected to release in the second half of 2015.

Samsung has produced chips for Apple's iPhone since it was first introduced in 2007. It still manufactures the Apple A6 processor that powers the iPhone 5. However, it was reported that Apple was cutting Samsung from A7 production as the two companies were at loggerheads after their rivalry in the smartphones segment and patent disputes across the world. Apple signing a new deal with Samsung comes as a surprise as it was believed that the former was cutting its reliance on the South Korean company.

In fact, the news comes shortly after it was reported that Apple had signed a three year agreement with Taiwan Semiconductor Manufacturing Company(TSMC) and its partner Global UniChip to make its new A-series chips built through 20nm, 16nm and 10nm process nodes. The report had cited industry sources to inform that TSMC would commence production of the Cupertino giant's A8 processor in small quantities in July 2013, and increase production capacity after December. It also said that a part of the chip maker's capacity would be used for manufacturing new Apple A9 and A9X processors.

The Apple A8 processor is expected to power a new iPhone which is expected to release in early 2014, while the A9 and A9X chips are likely to power new iPhone and iPad products.

Another report by The Wall Street Journal had reiterated that Apple had indeed signed an agreement with TSMC, citing unidentified TSMC executives as source. It said that the move was the latest in a series of efforts by Apple to lessen its reliance on parts produced by Samsung, however, it added that Samsung would remain Apple's main supplier of high-resolution screens, memory chips and processors used in mobile devices through next year.